HYMTF - Assessing The Korean Automobile Sector
Finding momentum for a recovery
Stock momentum may come from global carmakers’ change of mid/long-term strategic focus
The global automobile sector is becoming less attractive as an investment because of the recent slowdown in the industry. Since 2013, global auto shares have been trading at increasingly higher discounts to their relevant benchmark indices. However, several companies have managed to stage stock recoveries by changing their mid/long-term strategies, which helped them to defend margins and boost profits. Their strategies have been effective because they have shifted their focus from the traditional strategy of boosting sales volume